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Killing the bill: The interplay of social comparisons and financial framing on electricity-saving preferences

Author

Listed:
  • Fabien Giauque
  • Mehdi Farsi
  • Sylvain Weber
  • Michael Puntiroli

Abstract

Using a discrete choice experiment (DCE), we examine how social comparisons and financial framing shape individuals' preferences for electricity demand behaviors, including conservation actions, efficiency investments, and green power mix. While a strong majority favors sustainable behaviors over inaction, social comparisons, with and without financial framing, significantly increase the likelihood of choosing inaction. Heterogeneity analyses reveal that this unintended effect arises among both below- and above-average users, although the underlying patterns differ across interventions. Further moderation analyses suggest that misalignment between individuals' self-perception and their relative position within the consumption distribution, as well as conflicting motivational mechanisms, partially explain these results.

Suggested Citation

  • Fabien Giauque & Mehdi Farsi & Sylvain Weber & Michael Puntiroli, 2025. "Killing the bill: The interplay of social comparisons and financial framing on electricity-saving preferences," IRENE Working Papers 25-02, IRENE Institute of Economic Research.
    • Handle: RePEc:irn:wpaper:25-02
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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